SEC Obtains Final Judgment Against Former Stock Promoter
Litigation Release No. 24569 / August 16, 2019
Securities and Exchange Commission v. Samuel Brown, et al., No. 15-cv-13348 (D. Mass. filed Sept. 14, 2015)
A federal district court in Boston, Massachusetts has entered a final judgment in a microcap fraud case against Idaho resident Samuel Brown, a former stock promoter for a Massachusetts-based medical diagnostics company previously called Endeavor Power Corp. The SEC previously charged Brown and two other defendants with a scheme to defraud potential investors in Endeavor's publicly traded stock. The SEC's complaint alleged that Brown - who previously pled guilty to charges that included making false statements to the SEC during its investigation - attempted to manipulate the market for Endeavor's stock by, among other things, engaging in coordinated trading designed to artificially inflate its price.
On July 29, 2019, the U.S. District Court for the District of Massachusetts entered a consent judgment against Brown, enjoining him from future violations of the antifraud provisions of Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder, and prohibiting Brown from participating in the offering of a penny stock.
The SEC's litigation against the remaining defendant, Marco Babini, is pending.